Civil Penalty Proposed against Voices in the Wilderness

[Seb Wills <saw27@DELETETHIScam.ac.uk>]

I don't normally post stuff to this list about specifically US related
happenings, but this is worth knowing about...

(2 messages below)
-----------------------

From: Kathy Kelly <kkelly@igc.apc.org>
Date: Tuesday, December 08, 1998 7:59 PM
Subject: Civil Penalty Proposed against Voices in the Wilderness

Dear Friends-

Yesterday afternoon Voices in the Wilderness received a Prepenalty Notice
from the Department of the Treasury in Washington DC.  The notice
included Proposed Penalties directed at Voices and four individual
delegates: Bert Sacks, Randall Mullins, Dan Handelman, and Joe Zito.  We
are charged with violating the embargo on Iraq through "exportation of
donated goods, including medical supplies and toys, to Iraq."  The
proposed penalty for Voices is $120,000.  The proposed penalty for the
individual delegates ranges from $10,000-$12,000.

Following is the notice.  We are asking that you pass this on to as many
people as possible.  This is a great opportunity to draw attention to the
ongoing crisis in Iraq.  The US government tells us that we have engaged
in "prohibited" transactions, but in the eyes of humanity, who is the real
criminal?  Five to six thousands children die each month in Iraq due to
the sanctions, according to the most recent UN report.  We will be meeting
in the next few days to plan and strategize the ways in which we respond
to and challenge this letter.  Spreading information through word of mouth
(or e-mail!) is one of the most powerful tools we have in resisting
injustice. We would like to ask you to seize this opportunity to bring
light to the humanitarian disaster in Iraq.  We welcome any suggestions or
feedbacks from you.


As always, we deeply appreciate your continued support.  Thank you very
much.

Sincerely,

Jeff Guntzel
for Voices in the Wilderness



Prepenalty Notice

December 3, 1998

Dear Ms. Kelly and Messrs. Handelman, Mullins, Sacks, and Zito:

The Office of Foreign Assets Control ("FAC") has reasonable cause to
believe that you and Voices in the Wilderness ("VW") have engaged in
certain prohibited transactions, detailed below, relating to the embargo
against Iraq in 1997.  Inasmuch as no license or approval had been issued
by OFAC prior to such transactions, they violated the Iraqi Sanctions
Regulations, 31 CFR Part 575 (the "Regulations"), and underlying statutes
and Executive orders.  See, specifically, §§ 575.204-.207 and 575.211 of
the Regulations.

Violations:

The violations of the regulations and underlying statutes and Executive
Orders for which this Notice is issued concern your and VW’s exportation
of donated goods, including medical supplies and toys, to Iraq absent
specific prior authorization by OFAC and transactions relating to travel
to Iraq and activities in Iraq.  Additionally, the violations involve
transactions for the purpose of , or which have the effect of, evading or
avoiding, or which facilitate the evasion or avoidance of any of the
prohibitions of the Regulations, as well as a conspiracy formed for the
purpose of engaging in transactions prohibited by the Regulations.  In
this regard, VW has organized members to deliver goods to Iraq in
violation of the embargo and made express statements of the organization’s
knowledge of its violative actions.  As to Messrs. Handelman and Mullins,
the violations also concern the importation of goods and services of Iraqi
origin.  Specifically, the violations are as follows:

1.  In March 1996, VW exported goods, including medical supplies, valued
at approximately $18,000, to Iraq absent prior specific license or other
authorization issued by OFAC;

2.  In August 1996, VW exported goods, including medical supplies, valued
at approximately $8,000, to Iraq absent prior specific license or other
authorization issued by OFAC;

3.  In November 1996, VW exported goods, including medical supplies,
valued at approximately $10,000, to Iraq absent prior license or other
authorization issued by OFAC;

4.  In November 1997, VW exported goods, including medical supplies and
toys, valued at approximately $30,000-40,000, to Iraq absent prior license
or other authorization issued by OFAC;

5.  On or about November 21, 1997, Mr. Handelman exported film and
videotape to Iraq, through Jordan;

6.  Between on or about November 21-30, 1997, Messrs.  Handelman, Mullins,
Sacks, and Zito, engaged in currency travel-related transactions
to/from/within Iraq absent prior license or other authorization from OFAC.  
These currency transactions included, but are not limited to, the purchase
of food, lodging, ground transportation, and incidentals;

7.  On December 3, 1997, Mr. Handelman imported goods and/or services,
into the United States at Detroit, Michigan.  Upon entry of the goods, the
Untied States Customs Service ("USCS") seized them (District Case Nos.
98-3801-000235).  The goods included an Iraqi water bottle label, an Iraqi
stamp, photographic film, video and audio tapes and/or cassettes,
postcards, and assorted papers;

8.  On December 3, 1997, Mr. Mullins imported goods and/or services, into
the United States at Detroit, Michigan.  Upon entry of the goods, the USCS
seized them (District case No. 98-3801-00238).  The goods included a
necklace, a wooden drum, audio tapes, a computer disc, notebooks,
pictures, and miscellaneous papers and cards;

9.  In July 1998, VW exported goods to Iraq absent prior specific license
or other authorization issued by OFAC; and

10.  In September 1998, VW exported goods, including medical supplies, to
Iraq absent prior specific license or other authorization issued by OFAC.

Proposed Penalty:

Section 206 of IEEPA, 50 U.S.C. § 1705, provides, in part, for a civil
penalty not to exceed $10,000 per violation.  section 586E of the Iraq
Sanctions Act of 1990, PL.101-513, 104 Stat. 2049, provides, in part, for
a civil penalty not to exceed $250,000 for each violation occurring after
Nov. 5 1990**.  See, Regulations § 575.701. Pursuant to § 575.702 of the
Regulations, you are hereby notified that OFAC intends to issue a claim
against each of you and VW for a monetary penalty in the amounts set forth
below:

As to VW :  $120,000, computed at $20,000 for each Counts 1-4, 9 and 10

As to Mr. Handelman:  $12,000, computed at $1,000 for each of Counts 5 and
7, plus $10,000 for Count 6

As to Mr. Mullins:  $11,000, computed at $1,000 for Count 8, plus $10,000
for Count 6

As to Mr. Sacks:  $10,000 for Count 6

As to Mr. Zito:  $10,000 for Count 6

With respect to the disposition of goods seized in the above-cited USCS
District Cases >from Messrs. Handelman and Mullins, we recommend that,
inasmuch as goods have been involved in the violation of U.S. law by U.S.
persons, such goods be forfeited to the United States in accordance with
USCS procedures.

Election of Proceedings:

1. You have the right to make a written presentation to FAC within thirty
(30) days of the mailing of this Notice.  Such written presentation in
response to this Notice need not be in any particular form, but it should
contain a response to the allegations herein, and set forth the reasons
why the penalty should not be issued, or if issued, why the amount should
ne less than proposed in this Notice.  Such response should be addressed
to the Office of Foreign Assets Control (Attention:  Civil Penalties),
U.S. Department of the Treasury, 1500 Pennsylvania Avenue, N.W.,
Washington, D.C. 20220.

2.  In the event that you elect not to respond, OFAC will conclude that
you have decided not to submit any new facts or explanations for our
consideration.  In such instance, OFAC will issue a Penalty Notice in
accordance with § 575.704 (b) of the Regulations, finding a violation and
assessing a penalty generally in the amount proposed herein.

3.  Should you elect to resolve this matter informally absent any final
agency finding of violation, you may initiate settlement negotiations by
telephoning the OFAC staff member named below under "Contact Person" at
any time before you are issued a Penalty notice.  If the negotiations
result in settlement, you are not required to make a written response to
this Notice, which will be withdrawn without a formal determination of
violation, provided settlement occurs within the time period set in this
Notice.


Collection:

Section 575.705 of the Regulations provides that this matter shall be
referred to the United States Department of Justice for collection if the
penalty is not paid within thirty (30) days of the mailing of a Penalty
Notice, should one be issued imposing a penalty pursuant to § 575.704 of
the Regulations. Prior to such referral, OFAC may undertake administrative
collection through the Office of Financial Management of the U.S. Treasury
Department.

Contact:

In view of the short response time, if you have any questions concerning
this matter, please feel free to contact the appropriate member of my
staff, Mrs. B.S. Scott, Chief, Civil Penalties program, at telephone
number (202) 622-6140.

Sincerely,

R. Richard Newcomb
Director
Office of Foreign Assets Control

**Section 4 of the Federal Civil Penalties Inflation Adjustment Act of
1990 (Pub.L. 101-410, 104 Stat. 890, 28 U.S.C. 2461 note), as amended by
the debt Collection Improvement Act of 1996 (Pub.L. 104-134, sec. 31001
(s)1), Apr. 26, 1996, 110 Stat. 1321-373 -- jointly, the "FCPIA"),
requires each Federal agency with statutory authority to assess civil
monetary penalties ("CMPs") for inflation according to a formula described
in § 5 of the FCPIA. Accordingly, on October 23, 1996, OFAC published in
the Federal register the required amendment, effective October 21, 1996,
to the Regulations adjusting its CMP to $275,000.  See 61 FR 54936 at
54939.



Voices in the Wilderness
A Campaign to End the US/UN Economic Sanctions Against the People of Iraq
1460 West Carmen Ave.
Chicago, IL 60640
ph:773-784-8065; fax: 773-784-8837
email: kkelly@igc.apc.org
website: http://www.nonviolence.org/vitw

---------- Forwarded message ----------
From: Dan Handelman <danhan@agora.rdrop.com>

Friends:

For those of you who don't know, Voices in the Wilderness received a
letter Monday informing them that VitW would be fined $120,000 and myself,
Randall, Bert and Joe would be fined about $10,000 each for going to Iraq
with medicine and toys for children. 

We are working on a group strategy; it is my belief that none of us intend
to pay anything to the government who would then use our money to kill
more children.  If you'd like to see the full letter please e-mail me
back.  I will let you know when we have a full strategy what you can do to
help if you want. Please consider the fact that OFAC labelled WitW as a
"conspiracy" to violate the sanctions. In the spirit of those who stepped
forward in Holland and wore yellow stars to say, "I'm a Jew, too", you may
want to consider if you want to identify yourself as a "co-conspirator."

There will of course be many less radical ways to support our efforts to
publicize these ridiculous fines, so stay tuned.
--dan h

VOICES IN THE WILDERNESS/PORTLAND
c/o Huntwork 5036 NE 16th Ave Portland, OR 97211-4408


News Item                               December 9, 1998 
For Immediate Release        Contact: Ann or Bruce Huntwork
                                      281-4970

 U.S. GOVERNMENT IMPOSES FINE ON LOCAL ACTIVIST FOR BRINGING MEDICINE AND
TOYS TO IRAQI CHILDREN

NEWS CONFERENCE NOON, DECEMBER 10  2116 NE 18th

On December 3, the Office of Foreign Assets Control (OFAC) issued
prepenalty notices to Dan Handelman of Portland and other members of
Voices in the Wilderness, stating they would be fined a total of $163,000
for "exportation of donated goods, including medical supplies and toys to
Iraq." Handelman will hold a news conference on Thursday, December 10, at
noon, at the Peace House, 2116 NE 18th (at Tillamook). Thursday is the
50th anniversary of the U.N. Declaration of Human Rights.

"It's ironic that today we celebrate the 50th anniversary of a U.N. 
agreement to protect the human rights of every person on earth, while the
U.N. sanctions against Iraq continue to kill 250 people every day, " said
Handelman. These figures are based on a U.N. agency report (UNICEF, April
1998) and were repeated by the head of the U.N. Humanitarian Program in
Iraq, Denis Halliday, when he resigned in protest this fall. 

Handelman travelled with three other men from the Northwest in November,
1997 to deliver 400 pounds of basic medical supplies such as aspirin and
syringes, as well as the notorious children's toys mentioned in the OFAC
letter. He carried a camcorder in and out of Iraq, and his videotapes were
seized by customs on his return December 3, 1997. OFAC is fining Handelman
$1000 for exporting the videotape and film into Iraq, and another $1000
for importing them back to the U.S. In addition, Handelman and his
traveling companions were fined $10,000 apiece for traveling to Iraq,
delivering medicine, and spending incidental money there for lodging and
food, while the organization Voices in the Wilderness and its founder
Kathy Kelly face $120,000 fine. 

At the news conference, Handelman will show and make available a short
clip of his video footage which he managed to get back from Iraq,
depicting some of the conditions created by the U.S./U.N. policies. The
images include malnourished infants dying in hospitals without medications
or bedsheets and quick glances at the medicine and toys.

In the 1991 "Gulf War," the U.S. deliberately targeted electrical, water
treatment, and sewage treatment plants. The oil embargo has limited Iraq's
national income and has provided no means to rebuild their infrastructure.
Despite the "oil-for-food" deal in place, a bottle of aspirin is a scarce
commodity and would cost the average Iraqi most of a month's salary to
buy. 

Voices in the Wilderness (VITW) is a Chicago-based group dedicated to
ending the eight-year-long sanctions regime, which, according to U.N. 
agencies, has taken the lives of over one million Iraqis. VITW opposes the
development, storage, sale and use of any weapons, be they nuclear,
chemical, biological or, in the case of sanctions, economic. Their
eighteen delegations have traveled to Iraq with medicine in direct
violation of U.S. and U.N. laws. 

For more information on OFAC's letter, please call Ms. Betsy Sue Scott at
the Office of Foreign Assets Control at (202) 622-6140. Handelman will
have copies of the letter at Thursday's news conference. For other
information, contact VITW/Portland at 281-4970. 



--
-----------------------------------------------------------------------------
This is a discussion list run by Campaign Against Sanctions on Iraq.
To be removed/added, email soc-casi-discuss-request@lists.cam.ac.uk, NOT the
whole list. Archived at http://linux.clare.cam.ac.uk/~saw27/casi/discuss.html